When you buy a health insurance plan in India, there are many important terms that you must be aware of. One of these terms is the co-payment. Co-payment is a compulsory payment that you have to pay at the time of a claim. It is a small percentage of the total bill amount that you mutually agree to pay before the policy commences. There are many other terms associated with health insurance. Take a look at this article to know more about them.
What is a no claim bonus in health insurance?
The next term that we discuss in detail is the NCB or the no claim bonus. The NCB is a very important component of any health insurance policy. As per the clauses of health insurance in India, a policyholder is entitled to get a discount on his/her renewal health insurance plan premium if he/she had a claim free preceding year. So if you remain healthy and make no claims, you can expect a good discount on the premium of your next policy period. Some of the other interest features of no claim bonus are:
- Bonus accumulates: The NCB accumulates over the years. For every year that you do not make a claim, the bonus is added and builds up. You can therefore make some very heavy savings with the help of the no claim bonus in health insurance.
- It is transferable: The no claim bonus can be transferred from one insurance provider to the other if at the time of renewal you decide to switch insurers. This is another beneficial feature of the NCB.
You must ensure your no claim bonus is being calculated properly every time you renew your health plan. This will give you many advantages and will definitely lower your overall health insurance expenses to a great degree.
Claim settlement ratio and health insurance
The claim settlement ratio is another crucial term associated with health. The claim settlement ratio is the figure that helps determine a particular insurance provider’s credibility, efficiency and competence in the industry. When an insurer has a poor claim settlement ratio, you can never be sure of getting your own claim from them also. When the claim settlement ratio is strong, it tells the insurer is efficient and you would benefit from buying your health insurance policy from them.
The claim settlement ratio is nothing but the number of claims the insurance provider settles in a year. Here is how you can find out about the various claim settlement ratios of the various health insurance providers of India:
- Check online: You can start off by researching about the insurance company online. If you have a particular insurer in mind and you want to buy your health plans from them, look for official figures that indicate the company’s specific claim settlement ratio. This will help you to know more about the company and how it performs in handling claims.
- Compare: Another easy way to find the claim settlement ratio is to compare the different health policies. The internet has made it very easy for you to compare the plans. You can easily and quickly use an online comparison tool to not only see the quotes of the various plans, but to also see the insurance providers’ claim settlement ratios.
- This will help you overall to choose the right plan from the right insurer.
- Ask for reviews: The next option is to directly ask the existing policyholders what their experiences have been. If a certain policyholder states that he has had a bad claim experience with a particular insurance provider, you may be better off looking for a different insurer.
- Check with your insurance expert: Finally, you can directly ask your insurance expert about the claim settlement ratio of the chosen health insurance provider. Then if you are happy with the figures, you can go ahead and make a purchase.
In a nutshell
It is always advisable for you to be aware of the components that make up health insurance. From co-payment to the no claim bonus to claim settlement ratio, all play crucial roles in health insurance. So get as much info about each of them as possible and only then finalise your health insurance plan. This will help you to find the best plan from the best insurance company. You will pay a reasonable premium and also be assured of getting the claim when you need it.